EANS-Adhoc: LifeWatch AG expects an operating loss for the first quarter of 2010 and provides revised guidance for 2010
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3-month report/LifeWatch AG
Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss Exchange: LIFE), the leading wireless remote cardiac and medical patient monitoring service provider in the U.S., today pre-announced earnings for the first quarter of 2010.
The challenging reimbursement environment negatively impacted LifeWatch´s first quarter results with revenue of approximately USD 22 million and a negative EBIT (LBIT) of approximately (USD 4) million for the first quarter of 2010. LifeWatch´s ACT service, however, recorded significant gains with patient enrollments in Q1 2010 increasing 37% compared with Q1 2009. In addition, cash flow from operations for the first quarter remained strong at approximately USD 6 million, up from the USD 4.5 million generated in Q1 2009. LifeWatch expects cash, cash equivalents and marketable securities to total approximately USD 43 million at the end of Q1 2010 up from USD 39 million at the end of Q4 2009.
LifeWatch continues to secure contracts with commercial insurance companies and has successfully signed contracts with nearly 500 commercial insurers that cover nearly 300 million lives. During the first quarter of 2010, a few commercial carriers denied ACT reimbursement under the new cardiac telemetry billing code. Due to the high operational gearing of the Company, these events had a significant negative impact on revenue and margins. LifeWatch is currently working with these insurance companies to ensure patient coverage in the future.
Commensurate with LifeWatch´s increasing focus on its services business, the Company has taken a one-time inventory mark-down of approximately USD 1.5 million in the first quarter of 2010. The Company is confident that after this adjustment the inventory now reflects its current value. In addition, LifeWatch is constantly reviewing processes and embracing new methods with a view to improving operating leverage, reducing costs and improving profitability.
LifeWatch expects that the reimbursement environment will remain challenging in the near term and has thus revised its outlook for the full year 2010 with a USD 100-105 million revenue target and a USD 1-3 million EBIT target.
Management will provide detailed information on the first quarter 2010 results and the Company´s growth strategy at the upcoming analyst and media conference on May 11, 2010. The details of the conference are as follows:
Press Release at 7:00 a.m. CEST (1:00 a.m. EDT):
The results for the first quarter 2010 will be released internationally at 7:00 a.m. CEST.
Analyst and Media conference at 09:30 a.m. CEST:
LifeWatch will report in detail on the first quarter 2010 results at an English- speaking analyst and media conference which takes place in Zurich on
Tuesday, May 11, 2010; 09:30 a.m. CEST, at the Zunfthaus zur
Saffran, Limmatquai 54, 8001 Zurich/Switzerland
International Live-Conference Call/Audio Webcast at 09:30 a.m. CEST:
For international participants, a combined conference call and audio webcast, accompanied by presentation visuals, is broadcast online at 09:30 a.m. CEST (03:30 a.m. EDT) live from the conference in Zurich. Further information regarding the audio webcast and respective technical requirements can be found in the Investor Relations section of the LifeWatch Website www.lifewatch.com in due time. An archived version of the webcast will remain available for download.
The local dial-in numbers for the conference call are as follows:
+ 41 (0)91 610 56 00 (Europe) + 44 (0)207 107 06 11 (UK) + 1(1)866 291 41 66 (USA - Toll-free)
All participants are requested to dial in at least ten minutes prior to the call. No PIN is required to access the call.
About LifeWatch AG:
LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss Exchange (LIFE), Switzerland, is the leading healthcare technology and solution company, specializing in advanced telehealth systems and wireless remote patient monitoring services. LifeWatch services cater to individuals, ranging from high-risk and chronically ill patients, to consumers of health and wellness products. LifeWatch has subsidiaries in the United States, the Netherlands, Japan, the United Kingdom, Switzerland and Israel. LifeWatch AG is the parent company of LifeWatch Services Inc., a leading US-based cardiac monitoring service provider, and manufacturer of telecardiology products. LifeWatch is also introducing a new program for Home SleepTesting of Obstructive Sleep Apnea (OSA) patients under the brand name NiteWatch. For additional information, please visit www.lifewatch.com and www.nitewatchservices.com
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This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding future results of operations and financial position, business strategy and plans and objectives for future operations, are forward- looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking statements. LifeWatch AG has based these forward- looking statements largely on current expectations and projections about future events and financial trends that it believes may affect the financial condition, results of operations, business strategy, short term and long term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances described may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward- looking statements. All forward-looking statements are based only on data available to LifeWatch AG at the time of the issue of this press release. LifeWatch AG does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES OR AN INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL STATEMENTS OF THE ISSUER.
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ots Originaltext: LifeWatch AG
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Woo Kim, Senior Vice President of Strategy and Business Development, LifeWatch
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